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Income Tax Expense
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax Expense Income Tax Expense
The components of income tax expense for the years ended December 31, 2024, 2023, and 2022, were as follows:
Years Ended December 31,
(in thousands)202420232022
Current tax expense$7,382 $8,395 $7,752 
Deferred tax expense (benefit)764 (330)313 
Income tax expense$8,146 $8,065 $8,065 
The source and tax effect of items reconciling income tax expense to the amount computed by applying the federal income tax rates in effect to income before income tax expense for the years ended December 31, 2024, 2023, and 2022 are as follows:
 December 31,
202420232022
(dollars in thousands)AmountPercentAmountPercentAmountPercent
Income before income tax expense$42,381 100.0 %$42,944 100.0 %$44,981 100.0 %
U.S. federal income tax expense8,900 21.0 %9,018 21.0 %9,446 21.0 %
Nontaxable income(897)(2.1 %)(1,073)(2.5 %)(1,338)(3.0 %)
Nondeductible expenses81 0.2 %67 0.2 %50 0.1 %
Other62 0.1 %53 0.1 %(93)(0.2 %)
Income tax expense$8,146 19.2 %$8,065 18.8 %$8,065 17.9 %
The Company records deferred income taxes on the tax effect of changes in temporary differences. Deferred tax assets (liabilities) are subject to a valuation allowance unless their realization is more likely than not. The deferred tax assets (liabilities) were comprised of the following as of December 31, 2024 and 2023:
December 31,
(in thousands)20242023
Depreciation$(3,377)$(2,542)
FHLB of Dallas stock dividends(39)(20)
Equity security valuation(6)— 
Other(338)— 
Gross deferred tax liability(3,760)(2,562)
Allowance for credit losses4,683 4,541 
Allowance for operational losses55 54 
Health insurance self fund340 221 
Deferred compensation831 708 
Unrealized loss on securities16,015 16,081 
Equity security valuation— 35 
Advance payments from vendors302 197 
Accrued bonus512 502 
Other— 72 
Gross deferred tax asset22,738 22,411 
Net deferred tax asset (liability)$18,978 $19,849